2008 Agenda Talking Points

BUDGET:  To provide Kansans with a balanced budget that slows government growth and spending; stabilizes the state budget; and expands transparency in state spending.

• Limit increases in state spending to 5%.
• FY 2009 spending commitments put spending at a 4.2 percent increase above FY 2008.

•Some of the spending commitments go back to 2002 when the economy sharply declined and it was decided to postpone paying for programs (i.e. bonds, use of one-time funding, etc).

• The State of Kansas has been through a very challenging year; ice storms, tornadoes, floods, and the last being the denial of the proposed expansion of the $3.6 million Sunflower Electric plant at Holcomb.  Each and every event has and will continue to have a fiscal impact for the legislature to deal with during the upcoming session. 
• We have begun taking a hard look at the current budget for areas that can be reduced or cut.  Working together, we are confident we will find spending that can be reduced or is not necessary anymore. 
• House Appropriations Committee Chairman Rep. Sharon Schwartz and Vice Chairman Rep. Lee Tafanelli also will challenge their committee and the House Budget Committee chairmen and their committees to review the agencies’ budgets carefully for possible savings. 
• We know standing firm against increased spending will not be easy.  However, it will better prepare our state for its financial future and for the future fiscal responsibilities our children will face.

• Establish a Budget Stabilization Fund.
• Similar to a “Rainy Day Fund”, this fund would be created by revenues collected that are above the 7.5% required ending balance.
• The fund would be limited to paying for items like debt reduction.

• Expand state budget transparency.
• Kansas Taxpayers have the right to know how every tax dollar is spent.  Efforts to provide transparency in government are designed to make that information available to everyone. 
• Transparency in spending encourages competition for funding, forces improvement in how those dollars are spent, and clarifies for citizens how their governments serve them.
• Kansas was the first state to commit to making the budget easily searchable when we passed the Kansas Taxpayer Transparency Act of 2007.
• The act requires the Secretary of Administration develop and operate a single, searchable website accessible by the public at no cost.  The website, which will be up and running by March 1, 2008, will include information about state expenditures, revenues, and bond indebtness.
• Action this session will build upon the Transparency Act to make more state spending information available to Kansas Taxpayers.

TAXES:  To provide sound tax policy for Kansas businesses, families and property owners that makes Kansas more competitive nationally and globally.

·        Establish a “Back to School” sales tax holiday.

• Many states including Missouri have adopted the concept of allowing a sales tax holiday for back to school shoppers.  Many Kansans who live near those states cross statelines to buy their children’s school supplies.
• In 2006, Dept. of Revenue estimated it would give parents a savings of $3.7 million.
• Kansas Chamber of Commerce testified a sales tax holiday provides direct tax savings to consumers, spurs economic growth and development, and provides immediate and tangible tax relief.

·        Resolve the tax issue with Missouri for taxes paid by those who work across statelines.

• Missouri law eliminated the ability of people who live outside Missouri to deduct real estate taxes elsewhere on their Missouri income tax returns.
• The tax increase could apply to about 50,000 Kansans.
• The latest statistics, from 2005, showed that 79,991 Kansas residents filed Missouri returns and 52,865 itemized deductions.
• Kansas still has a law that allows residents of Missouri and other states who work in Kansas to deduct the property taxes they pay in their home states from any income they earn in Kansas.
• Proposal is to pass a similar bill that would affect only Missouri residents who work in Kansas and not workers from other surrounding states – unless Missouri lawmakers repeal their law.

·        Restructure the state’s Corporate Income Tax Rates and Corporation Tax Credit Plan.

• Would make Kansas more competitive nationally and globally. Kansas currently has higher business taxes than surrounding states.
• Restructuring the state’s Corporate Income Tax Rates – HB 2495 on House General Orders.   
• HB 2495 would reduce the top corporation income tax rate from the current 7.35% to 6.95% in tax year 2008; and to 6.75% in tax year 2009 and thereafter.
• A first year taxing savings of $5.8 million for Kansas businesses.
• Restructuring the Corporation Tax Credit Plan:
• Kansas corporations are holding approximately $400 million in outstanding tax credits.
• Would allow corporations to choose between some of our existing tax credits OR the expensing options.  One or the other... Under the expensing proposal the end-user would decide which options works best.

HEALTH CARE:  To improve affordable access and services to all Kansans; to relieve the burden of increasing premiums for individuals and small businesses; and to put Kansans in charge of their health care dollars.

• Continue health care reform including various KHPA recommendations.

◦   We want to expand access to health insurance for all Kansans with more affordable            choices and stable rates.

• Last session we passed the Foundations of Health Reform Act to begin reforming the way health care is delivered in our state.
• Begins Medicaid reform that includes long-term care alternatives, health opportunity accounts and giving Medicaid recipients choices of private insurance through tax credits, vouchers and premium assistance.

•          For the first time in years we will modernize Medicaid for the poorest Kansans, emphasizing health lifestyles, long-term cost savings and better health.

• Establishes Safety Net Clinic Capital Loan Guarantee Act to strengthen and expand Safety Net Clinics that offer low-cost and free health care to uninsured Kansans.
• Creates the Small Employer Cafeteria Plan Development Program to encourage and expand the use of pre-tax dollars to pay for health care by small businesses
• Encourages association and small business health insurance plans through grants and no-interest loans.

§  Establishes an Inspector General to monitor Medicaid programs for waste, fraud and abuse.

• KHPA has made 21 recommendations based on the Foundations of Health Reform Act Legislature will consider this session.

• Support tax incentives for small businesses that provide or expand 125 plans to their employees.
• Would reduce the costs for small businesses and make it more affordable for them to offer health insurance coverage to their employees.
• Among the working uninsured nationally, nearly 63% are either self-employed or work for a small business. (source: NFIB)
• Among working-age adult Kansans (18-64) 14.7% are uninsured – 57% of them are between 18-34 years old. (source: KHI)

• Pass the Healthcare Tax Equity Bill to provide uniform tax treatment to all Kansans for health related expenses.
• Approximately 89% of Kansans are covered by health insurance.
• Would help put self-employed businesses on equal footing with their larger counterparts by permitting health-insurance premiums to be deducted from both their income and payroll taxes.
• Allows individual taxpayers a refundable tax credit for health insurance costs paid for the benefit of the taxpayer, the taxpayer's spouse, and dependents

• Improve portability of health insurance coverage by extending state COBRA policy from six to 18 months of optional coverage.
• Improving the portability of health insurance will help those caught between coverage.
• Many of those who don’t have health insurance are between jobs or are waiting for their coverage to go into effect at a new job.
• In any given year about 10 percent of the workforce experiences a qualifying event that could potentially trigger COBRA eligibility. (Source: CATO Institute)
• The average duration of COBRA coverage for individuals who are eligible for eighteen months of coverage is 10.3 months, showing there is a true need to extend COBRA in Kansas.  (Source: CATO Institute)

IMMIGRATION:  To relieve the burden of the cost of state services for illegal aliens on Kansas Taxpayers; ensure state and federal immigration laws are enforced; and assist legal immigrants to assimilate into the Kansas culture and economy.

• Impose civil and criminal penalties on any illegal alien who registers to vote and/or votes in an election and on those who knowingly register an illegal alien to vote.
• It is important that we protect the integrity of the Kansas electoral process. 
• Would be a felony in Kansas.
• Currently classified as a misdemeanor in surrounding states. 

• Enforce federal law that denies public benefits to illegal aliens.  
• If we do nothing, Kansas could spend tens of millions of dollars providing state services for illegal aliens.
• Do nothing encourages a climate of breaking the law by granting access to taxpayer funded programs.
• State law should build on federal law and should discourage illegal aliens from seeking refuge in Kansas.

• Enhance the penalties of Dealing in False ID Documentation (KSA 21-3830).
• Identity theft impacts thousands of Kansans every year.
• Would help businesses better comply with immigration laws.
• Aimed at repeat offenders and those who deal in quantities of false IDs or are manufacturing false IDs.
• Also important to look at laws dealing with those who use a False ID to obtain employment or public benefits.

• Withholding state funds from organizations and businesses which knowingly violate Kansas immigration laws.
• This would include tax credits, grants, and loans offered through various state agencies.
• The state should not reward those who knowingly violate the law.

• Establish penalties for any business found to have knowingly employed an illegal alien or failed to comply with federal law regarding verifying an employee’s legal citizenship/work status.
• Most Kansas businesses comply with state and federal labor and immigration laws.
• Aimed at businesses who chose to violate the law must be held accountable for their actions – especially repeat offenders.

EDUCATION:  To maintain our public schools, vocational schools, community colleges & universities’ high standards of education and workforce development.

• Restructure education programs at vocational schools, community colleges and universities focused on meeting the needs of the Kansas business community.
• Ensure education programs, vocational training and workforce development programs meet the ongoing needs of the Kansas business community.
• Also ensures efficient use of state and local resources.
• There is a shortage of trained workforce: particularly in the manufacturing base industries, workers with skills in operating advanced technical equipment are in short supply in-state.

• Establish a uniform budgeting and reporting system for Kansas school districts with emphasis on budget transparency.
• Continue multi-year funding for school. Allows school districts and teachers to better plan for upcoming school year.
• Kansas taxpayers deserve to know exactly how schools budget and spend their funding.
• It is difficult to make accurate budgeting comparisons because school districts account or report their budgets differently.
• With a clear understanding of how each school district budgets and spends its funding, we could find more funding may be needed in some areas and less in others, but it is hard to be sure when the exact amounts are not substantiated by facts and only lumped together. 
• The State Board of Education would develop and maintain a centralized accounting and reporting system.  Each district would have remote access to work with the program.

• Stabilize in-state tuition to encourage attendance at Kansas universities, colleges and vocational schools.
• Kansas students and families deserve to be able to responsibility budget for their education.
• Making continued education a reasonable option for more Kansans will serve local economies by retaining and educating homegrown talent.
• In-state tuition for Kansas students increased this school year between five to more than nine percent, an average of 7.4%, while non-resident tuition increases this year averaged just 5.2%.
• Raising non-resident tuition rates to the national average would produce a $33.5 million dollar a year revenue stream. 

 ECONOMIC DEVELOPMENT AND TOURISM: To encourage our state’s entrepreneurial spirit by utilizing our natural resources, history and people; encourage private sector job growth; and establish a state energy policy.

• Focus on workforce development programs that meet the ongoing needs of the Kansas business community and ensure efficient use of state and local resources.
• Team with business community to make sure workforce development programs matches the specific needs of businesses.
• There are a number of industries in Kansas facing a worker shortage: Education, Medical, Aviation, Transportation and Construction to name a few.
• We need to develop a long-term plan to deal with the shortages of teachers, nurses, doctors, pharmacists, engineers, tradesmen, etc.

• Establish a Rural Development Commission to assist economic development and growth in rural Kansas counties
• Would focus on leadership development, entrepreneurship, and retention of youth in rural counties to help create new jobs, economic growth and improve the quality of life for Kansans who live in rural communities.

• Develop a state energy policy that includes a balance of baseload energy, renewable energy, and conservation efforts; and is based on sound scientific and economic analyses that carefully address costs and benefits.
• A strong state energy policy will truly make Kansas open for business and economic development. 
• KDHE denial of Sunflower permit did not address the real issue:
• The need for a state energy policy that provides affordable electric rates today,
• Addresses the disparity of rates paid by Kansas homeowners and businesses,
• And meets our growing energy demands in the future.
• Alternative energies like wind and solar power can play an important role in our state's energy portfolio, but the simple fact is wind turbines and sunshine alone cannot meet our growing demand for electricity.  
• Policy also must ensure our state laws and regulations are applied in a fair and uniform manner. 
• Businesses wanting to build or expand in Kansas must know what is expected of them so they can build plants that meet our needs and requirements.

ELECTIONS/CAMPAIGN FINANCE REFORM:  To bring more credibility to electoral process and to ensure every qualified Kansan's vote is counted.

• Constitutional Amendment to change how vacancies of statewide offices are filled.
• Kansas voters elect Statewide officials and should continue to have input when a vacancy occurs.
• State Political party of departing official would recommend three candidates to governor for selection.
• Respects and honors the election decision made by Kansas voters.

• Require disclosure of taxpayer-funded lobbying.
• Kansas Taxpayers deserve to know how their tax dollars are spent.
• Expands state budget transparency.

• Expand Satellite Voting Statewide in Kansas.
• Help America Vote Act eliminated hundreds of voting places in Kansas – making it more difficult for many Kansans to cast their ballots.
• Satellite Voting allows elections officials to set –up voting locations prior to election day.
• House passed HB 2019 – Remains in Conference Committee
• The bill would expand to all counties the ability of county elections officers to designate places other than the central county elections office as satellite advance voting sites.
• Current law restricts this to counties with a population exceeding 250,000 (Sedgwick and Johnson counties).

• Require Voter Photo ID.
• Ensures person wanting to cast ballot is person who is registered.
• House passed HB 2019 – Remains in Conference Committee
• Requires photo identification of in-person voters,
• Changes the list of acceptable identification forms for those voting by mail,
• Requires all voters to provide identification at every election,
• And exempts certain voters from the requirement to provide identification.

• Require Campaign Finance Reporting during 10-day period prior to elections.
• Filling reports during 10-day period prior to elections would let voters see who might be making last minute contributions to a campaign in an attempt to influence the outcome.
• An electronic filing system being set-up by the Secretary of State’s office would make it easier to fill reports closer to Election Day.

CRIME/PUBLIC SAFETY: To equip law enforcement agencies and prosecutors with the necessary resources to better enforce tougher penalties and protect citizens and to ensure the Kansas Judicial System serves all Kansans.

• Increase penalties on personal felony crimes.
• Would make Kansas safer by assuring those convicted of serious felonies and property crime receive strong sentences.
• Last year there were about 400 cases statewide where judges departed downward when sentencing convicted felonies – some received probation.
• Judges would be restricted from departing downward when they sentence those convicted of serious felonies and those with serious criminal histories. 
• Property crimes:  Those convicted of their 1^st property crime would be eligible for probation.  A 2^nd  property crime conviction while on probation would get them assigned to custody of the Dept. of Corrections secretary.

• Automatic prison sentence dedicated to an Alcohol/Drug Treatment program for those who are sentenced to a third or more DUI.
• Would make sure those convicted of multiply DUIs receive needed alcohol/drug treatment.
• Would reduce the number of repeat offenders because of the treatment they receive.
• Would deter others from driving under the influence of alcohol or drugs because of the mandated incarceration.
• Estimated 1000 beds would be needed in the first year but it is hoped that with a successful program as outlined by the bill, the numbers would decrease in subsequent years as the message got out the Kansas is serious about deterring chronic drunk driving and is willing to enforce strict penalties for those violators who fail to get the message.

• Reform the judicial selection process for appellate court judges.
• Would make the process more open and accountable.
• Would limit the dominant role that attorneys play in current system.

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